EU Plan Lets Banks Take Deposits in Crisis

The European Central Bank has unveiled a new set of banking plans that will allow failing banks to freeze their deposits in the event of an economic catastrophe to prevent further bank failures.

 

The European Central Bank has unveiled a new set of banking plans that will allow failing banks to freeze their deposits in the event of an economic catastrophe to prevent further bank failures. Continue reading

The Arctic Silk Road: A Huge Leap Forward for China and Russia

The Arctic Silk Road: A Huge Leap Forward for China and Russia

 

The Silk Road, renamed the Belt and Road Initiative (BRI), is developing infrastructure along land and sea trade routes. However, little is known about China’s initiative in the Arctic Circle, which represents a new route that Beijing is now able to develop thanks to technology together with the strategic partnership with Russia.

Involving about 65 countries and affecting 4.4 billion people, constituting thirty percent of the world’s GDP, together with a total investment from Beijing that could surpass a trillion dollars, the is an immense project that requires a lot of imagination to grasp the intentions of the Chinese leadership. With a host of projects already in progress, and some almost completed (the Sino-Pakistan Corridor known as CPEC is archetypical), the overland and maritime routes are developing side by side. Plenty of ink has been used detailing Beijing’s intentions regarding the East-West connections of the super Eurasian continent. Pipelines, railway lines, fiber-optic cables, telecommunications infrastructure and highways dominate discussions, together with talks about costs, feasibility studies, the question of security, and the return on investment. The land Silk Road is certainly an imposing challenge that is not just commercial in nature but sets the foundation for greater cultural and social integration between neighbouring countries. It is a project that in the long term aims to blend together the Eurasian continent and overcome the contradictions contained therein through win-win cooperation and economic development. Continue reading

Deutsche Bank CEO suggests robots could replace half the company’s 97,000 employees

John Cryan, CEO of Deutsche Bank (Thomas Lohnes | Getty Images)

 

Some very smart people say that robots are going to steal your job.

Researchers at Oxford University estimate that 47 percent of U.S. jobs could be replaced by robots, automated technology and automated intelligence (AI) within the next 20 yearsJeff Hesse, PwC principal and U.S. people and organization co-leader, tells CNBC Make It, “The displacement is already beginning to happen.”

Elon Musk told the National Governors Association, “There certainly will be job disruption. Because what’s going to happen is robots will be able to do everything better than us.” Musk even went so far as to say that “AI is a fundamental risk to the existence of human civilization.

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S. Korea ‘in talks to buy nuclear submarine’ from US: reports

 

South Korea is negotiating with the United States to buy nuclear-powered submarines to guard against threats from Pyongyang, local reports said Tuesday, as President Donald Trump said Seoul would buy “billions of dollars” of US weapons.

Nuclear-powered submarines can stay submerged for months, giving them a far greater range than their diesel-powered counterparts, and are also crucial to any seaborne nuclear deterrent. Continue reading

Future Saudi king tightens grip on power with arrests including Prince Alwaleed

FILE PHOTO – Saudi Crown Prince Mohammed bin Salman attends the Future Investment Initiative conference in Riyadh, Saudi Arabia October 24, 2017. REUTERS/Hamad I Mohammed

 

RIYADH (Reuters) – Saudi Arabia’s future king has tightened his grip on power through an anti-corruption purge by arresting royals, ministers and investors including billionaire Alwaleed bin Talal who is one of the kingdom’s most prominent businessmen.

Prince Alwaleed, a nephew of the king and owner of investment firm Kingdom Holding, invests in firms such as Citigroup and Twitter. He was among 11 princes, four ministers and tens of former ministers detained, three senior officials told Reuters on Sunday.

The purge against the kingdom’s political and business elite also targeted the head of the National Guard, Prince Miteb bin Abdullah, who was detained and replaced as minister of the powerful National Guard by Prince Khaled bin Ayyaf. Continue reading

Russia, China Mull Payment System to Bypass U.S. Sanctions

After signing an agreement with Chinese Premier Li Keqiang on Wednesday, Russian Prime Minister Dmitry Medvedev suggested the two countries consider linking their payment systems in a move that would allow both countries to skirt much of the economic pressure created by U.S. sanctions.

 

In the face of withering sanctions imposed by the U.S., Russia has reached out to China to consider a payment system that allows them to bypass the American banking system, thereby avoiding sanction restrictions. Continue reading

The Era Of Oil And Gas Is Nearing Its End

American Energy Consumption by Source, 1775-2012 (Source: Energy Information Agency, via Bloomberg)

 

The history of crude oil and natural gas is a history of technological innovation. Until recently the innovation supported crude oil and natural gas. Now, it challenges it, causing structural changes in the crude oil and natural gas markets.

Originally, crude oil was only used for lighting. This changed following the invention of the internal combustion engine, which outperformed steam engine in power, range and ease of operation and maintenance, and the invention of the conveyor belt, which made it possible to mass-produce the internal combustion engine at a price which was affordable to the masses. Not much later, crude oil became the transportation fuel of choice. The horse drawn carriage was replaced by the car; the locomotive by the diesel train; the steamship by the motor vessel; and the zeppelin by the airplane. Continue reading

The Future of Capitalism

When I speak of the future of capitalism, I mean the future of competitive capitalism—a free enterprise capitalism. In a certain sense, every major society is capitalist. Russia has a great deal of capital, but the capital is under the control of governmental officials who are supposedly acting as the agents of the state. That turns capitalism (state capitalism) into a wholly different system than a system under which capital is controlled by individuals in their private capacity as owners and operators of industry. What I want to speak about tonight is the future of private enterprise—of competitive capitalism.

The future of private enterprise capitalism is also the future of a free society. There is no possibility of having a politically free society unless the major part of its economic resources are operated under a capitalistic private enterprise system. Continue reading

Germany’s Delegation To Russia Signals That Merkel Is Looking For New Allies

A delegation of executives from major German corporations recently met with Russian President Vladimir Putin.

Such delegations are not unusual. Sometimes it is routine, sometimes a courtesy. But occasionally, it has significance. In the case of Russia-Germany relations, such meetings are always potentially significant. Continue reading

Here Is The IMF’s Global Financial Crash Scenario

 

Hidden almost all the way in the end of the first chapter of the IMF’s latest Financial Stability Report, is a surprisingly candid discussion on the topic of whether “Rising Medium-Term Vulnerabilities Could Derail the Global Recovery”, which is a politically correct way of saying is the financial system on the verge of crashing.

In the section also called “Global Financial Dislocation Scenario” because “crash” sounds just a little too pedestrian, the IMF uses a DSGE model to project the current global financial sitution, and ominously admits that “concerns about a continuing buildup in debt loads and overstretched asset valuations could have global economic repercussions” and – in modeling out the next crash, pardon “dislocation” – the IMF conducts a “scenario analysis” to illustrate how a repricing of risks could “lead to a rise in credit spreads and a fall in capital market and housing prices, derailing the economic recovery and undermining financial stability.” Continue reading

China and Russia: Full Steam Ahead Towards a Cashless Society – Rory Hall

China and Russia: Full Steam Ahead Towards a Cashless Society - Rory Hall

 

We reported back in November 2016 – Cashless World: 1 out of 3 People Never Use Cash – fewer and fewer people understand the importance of using cash to protect themselves from an overarching government warlord. At the time, China’s use of digitized currency was growing at about 40% per annum. This means millions of people each year freely hand over their cash and opt to use their cell phone, online currency transfers or a plastic debit/credit card to make 100% of their purchases. We see this as nothing short of happily going into the gulag of digital enslavement. Continue reading

FRIEDMAN: EU Officials Out Of Step With Reality, Europeans Don’t See What’s Coming at Them

Imagine the following scenario.

Texas votes to secede from the United States, sparking bitter tension between Austin and Washington. A neo-Nazi party wins seats in the California legislature.

Cook County, home to Chicago, threatens to break away from Illinois to form its own state. Worried about losing such an economically vibrant region, government officials try to prevent the election from taking place.

The federal government vows to suspend North Carolina’s voting rights in Congress simply because it didn’t approve of its behavior. It considers doing likewise for Arizona.

In such a scenario, you might conclude that something is terribly wrong with the United States.

The thing is, this is pretty much what is happening in Europe.

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Donald Trump’s message to Greece: USA will INVEST in debt-ridden nation to save it from EU

A few points:

  • Trump is potentially building a deterrent against Turkish aggression.
  • Trump is hedging against the EU superstate that’s increasingly becoming anti-American through the Berlin-Paris-Brussels axis that has subjugated and destroyed Greece.
  • Trump is possibly racing against China’s infrastructure investments and Port of Pirus takeover, keeping them from gaining a foothold in one of Europe’s most important strategic gateways.

 

Trump

Donald Trump and Alexis Tsipras shake hands outside the White House

 

DONALD Trump praised Greece’s economic recovery and vowed to invest in the debt-ridden nation as he met the country’s prime minister who once called the businessman “evil” before the US election.

The US President pledged to help the Mediterreanean nation back to prosperity after its struggles with EU austerity over the last 8 years.

The two leaders met at the White House for cordial talks and among the topics for discussion were investments in Greek oil resources and Greece-based military bases as the relationship between the USA and Turkey becomes tense. Continue reading

The Power in the Center

 

 

BERLIN (Own report) – Using the secessionist conflict in Catalonia as a backdrop, the website of the German weekly Die Zeit published a fiery appeal for dismembering Europe’s nation-states. For quite some time, the author, Ulrike Guérot, has been promoting the “disappearance of the nation-state” in Europe. The nation-state should be replaced by regions with their “own respective identities” that could be “ethnically” defined. As examples, Guérot lists regions with strong separatist tendencies such as Flanders and Tyrol. The author sees herself upholding the tradition of the “European Federalists” of the early post-war period, who – under the guidance of western intelligence services – drew up plans for establishing of a European economic space with free circulation of commodities as a bulwark against the East European socialist countries. Wolfgang Schäuble, as President of the Association of European Border Regions (AEBR) in the early 1980, was also promoting regionalist plans. Inspired by former Nazi functionaries, the AEBR criticized the “nation-state’s barrier effect” of borders in the interests of large corporations. Current economic maps indicate which areas in the EU would form the continent’s most powerful block if regionalization should take effect: south and central Germany as well as its bordering regions from Flanders to Northern Italy.

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